i had my attic and basement insulated when i moved in to my place. i considered the wall thing, but figured it would be more of a hassel because of all the reasons mentioned in this thread. you might just notice a huge difference with just attic/ basement/ and new windows.
i also talked to a lot of older guys, who hate insulation and say that you need to let your house breath, otherwise you'll get moisture problems, and air quality issues inside your house. so you could just throw on some sweaters and hats too.
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